All ADX Forex Trading Strategy

Trading trends is a market approach that traders always gun for, as they look for ways to take advantage of directional markets.

Nevertheless it has sometimes proven difficult to not only find but also time entries into those trends.

The All ADX Forex Trading strategy is designed to help make the above stated process less cumbersome and traders can carefully spot the best market trends.

Pivotal to this strategy is the all ADX indicator, a technical tool that displays three important lines i.e. the gold (ADX line), green (DI+ or plus directional movement index) and red (DI- or minus directional movement index).

We’ve added a horizontal line at the 20 level to denote weak or strong trends depending on the orientation of the ADX line below or above this level respectively.

Chart Setup

MetaTrader4 Indicators: all-adx-indicator.ex4 (Inputs Variable Modified; ADXPeriod=42, barsPerTimeFrame=3500), fx-sniper.ex4 (Inputs Variable Modified; Rperiod=48, Draw4HowLongg=150000)

Preferred Time Frame(s): 1-Minute, 5-Minute, 15-Minutes, 30-Minutes, 1-Hour, 4-Hours, 1-Day, 1-Week

Recommended Trading Sessions: Any

Currency Pairs: Any pair

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Buy Trade Example

Fig. 1.0

Strategy

Long Entry Rules

Enter a bullish trade if the following indicator or chart pattern gets put on display:

  1. If the green line (DI+) of the all-adx-indicator breaks above the red line (DI-) as shown on Fig. 1.0, price is said to be driven higher, i.e. a trigger to go long on the designated currency pair. The trend is said to be strong at periods where the DI+ line breaks above the 20 horizontal level.
  2. If the line of the fx-sniper Metatrader 4 forex indicator turns medium sea green as depicted on Fig. 1.0, bulls are said to be taking a market lead, hence a buy order will do.

Stop Loss for Buy Entry: Place stop loss 2-3 pips below the most recent swing low price.

Exit Strategy/Take Profit for Buy Entry

Exit or take profit from all trades if the following rules or conditions takes precedence:

  1. If the green (DI+) line of the all-adx-indicator intersects the red line (DI-) while a bullish trend is ongoing, bulls power is said to be weaning, as such an exit or take profit will suffice.
  2. If the fx-sniper indicator line reverts to red while a bullish trend is running (see Fig. 1.0), it is indicative of a bearish reversal, therefore an exit or take profit is recommended.

Sell Entry Rules

Go short if the following setups gets displayed successfully on the activity chart:

  1. If the red line (DI-) of the all-adx-indicator breaks above the green line (DI+) as exemplified on Fig. 1.1, price is said to be pushed lower, i.e. a trigger to go short on the selected forex pair. The trend is said to be strong at periods where the DI- line hovers above the 20 horizontal level.
  2. If the line of the fx-sniper Metatrader 4 forex indicator turns red as seen on Fig. 1.1, bears are said to be taking a lead in the market, hence a sell order will suffice.

Stop Loss for Sell Entry: Place stop loss 2-3 pips above the most recent swing high price.

Exit Strategy/Take Profit for Sell Entry

Exit or take profit if the following takes center stage:

  1. If the red (DI-) line of the all-adx-indicator crosses the green (DI+) line during a bearish signal as indicated on Fig. 1.1, bears power is said to be halting, as such an exit or take profit is recommended.
  2. If the fx-sniper indicator line reverts to medium sea green during the course of a bearish trend, it is suggestive of a bullish reversal, therefore an exit or take profit is advised.

Sell Trade Example

Fig. 1.1

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About The Trading Indicators

The all-adx-indicator.ex4 is a technical tool used in gauging trend direction, as well at its accompanying strength.

The fx-sniper.ex4 is a moving average type custom indicator that smoothens price and is used to spot market trends.

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